SDDC Publishes 400NG Baseline Rates

This week SDDC posted the 400NG baseline rates that are effective January 1st, 2010. Previously, these rates have been provided by AMSA, which previously owned the 400NG tariff. However, in light of the decision last year by the Surface Transportation Board to remove antitrust immunity, AMSA is no longer claiming ownership of the tariff. This cleared the way for SDDC to take ownership of the tariff, and this publication is the first step in that process.

Our understanding is that SDDC agreed with AMSA’s calculation on the General Price Adjustment built into the 400NG, and that will be a 0.8% increase for 2010. However, there was some disagreement about how to apply this increase to the baseline rates, and contrary to AMSA’s opinion, SDDC has applied it across the board to every rate in the baseline tables. This may cause a slight difference between the way DPS rates invoices and the way AMSA’s 400NG software, which is available to PPSOs and GSA, may rate invoices. Both SDDC and AMSA acknowledged the problems that may cause, and seem willing to work together to eliminate any discrepancies. However, I did find this note on the SDDC webpage containing the rates interesting:

This is the sole source for DPS domestic rates to which linehaul and SIT discounts apply and SDDC does not endorse any 3rd party software or products that utilize these files to compute shipment costs. Any discrepancy between such software and these posted rates is no fault of SDDC and the attached rates provided by SDDC will be the final authority for payment.

Posting the rates on the SDDC website also allows the baseline rates to be viewed without the use of a software program, which is a change from the previous concept of an “electronic tariff”. It makes the tariff more like the current program tariffs, in that the baseline rates are viewable without a computer system. However, due to the way the 400NG was designed, while it may be possible to calculate a rate without using a computer system, it will be much more difficult than it is in the current program. The 400NG is designed for rates to be calculated with computer software, and doing it without the use of software will be very complex and difficult.

From Daycos’ perspective, we are actively working on loading these new rates into our system, and don’t anticipate any problems being ready for shipments picking up after January 1st. We have been assured that the DPS rates will be updated as well, so if all goes according to schedule, we should have a smooth transition for our billing and AccuBill customers.

Related Posts

1. SDDC Makes 400NG Rates More Accessible - January 21st, 2010
2. 2012 400NG Baseline Rates Posted - December 20th, 2011
3. SDDC Releases New Invoicing Tools - June 3rd, 2010